JUST IN: NERC dissolves Kaduna Disco board over N456bn debt

The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) due to the company's substantial market obligations and ongoing financial and operational difficulties. The regulator appointed an interim board of special directors and initiated a process to select a new core investor for KAEDC.

This decision, outlined in Order No. NERC/2026/086, came into effect on August 10, 2026, following an inquiry and discussions with key stakeholders, including the Bureau of Public Enterprises. KAEDC's cumulative market obligations since privatization reached approximately N456.5 billion as of May 2026, with N415.5 billion owed to Nigerian Bulk Electricity Trading Plc and N41 billion due to the Nigerian Independent System Operator.

Additional market debt of over N118.6 billion was accrued since June 2024 when ASI Engineering Limited assumed operations. KAEDC only remitted 41.93 percent of its adjusted market invoices in 2025, resulting in a market shortfall of about N46.71 billion. The regulator criticized KAEDC's weak operational and commercial performance, insufficient assets relative to liabilities, and inability to provide a credible pathway to sustainable recovery.